One of the main priorities of all business owners is to keep costs as low as possible whether it be through using technology solutions, implementing sound business processes, or more. But if you’re a business owner who owns multiple homes in different states, there are a plethora of additional options at your disposal, some of which aren't common knowledge. In this article by RealtyTopia, we’ll explore a few unique ways entrepreneurs can reduce costs both inside and outside the business by taking advantage of a multi-state living arrangement.
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Register Your LLC in a Different State
Each state has different requirements when it comes to LLC fees and tax implications. For instance, states such as Delaware and Nevada have some of the lowest LLC fees and no corporate taxes. As the owner, you can opt to incorporate your LLC in a different state to avail of these benefits. Having a home in the state will make the process easier as you can provide proof of residency and streamline the registration process.
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Work with a Registered Agent
A registered agent is a designated individual/company that receives business-related documents such as tax notices, subpoenas, and other correspondence on your behalf.
Using agents is beneficial for business owners running out-of-state businesses, as it helps them stay on top of reporting requirements and avoid any regulatory issues which can harm business performance. With an agent in the picture, you’ll be able to spend greater time towards achieving business goals rather than managing paperwork and legislative requirements.
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Pay Lower Insurance Premiums
Having a multi-state living arrangement also provides you flexibility regarding choosing insurance providers and paying lower premiums. For instance, as reported by Carinsurance.com, the average annual car insurance rate in Texas is $1875, while in New York, it is $2020, and the cheapest can be found in Ohio ($1023). But, to purchase car insurance in a particular state you will need to adhere to the requirements set by local providers, one of which will be proof of you living in the given state permanently or for most of the year. You can adopt a similar approach for choosing health insurance providers as well.
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Reduce Home Maintenance Costs
The cost of maintaining two homes can burn a hole in your pocket if not kept in check. Here are a few ways to reduce monthly maintenance costs:
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Install energy-efficient lighting such as LEDs, which, as reported by the U.S. Department of Energy, use 75% less energy and last 25 times longer compared to incandescent bulbs.
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If your home gets plenty of sun around the year, invest in solar panels, which can be used to meet your energy needs and significantly reduce electricity bills.
Before buying any of the above-mentioned products or services, remember to conduct thorough online research regarding its price, performance, and customer reviews to ensure they’re worth the investment.
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Compare Your Living Options
Here’s a cost-of-living comparison between five of the best locations you can consider to find the best balance between your business and family needs, as reported by Move.org:
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Cleveland, OH: This city boasts of some of the cheapest monthly costs of utilities ($204) and gas ($125), with the average total spend coming to $1332/month.
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San Antonio, TX: Along with a reasonable cost of living of $1429, you’ll benefit from not having to pay any income tax. Additionally, there are various storage unit options for San Antonio residents which can be used for commercial or personal purposes.
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Miami, FL: Along with business-friendly policies, the city provides affordable utilities, groceries, and housing amounting to just $1835/month.
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Tampa, FL: This is another great option for business owners in the sunshine state, as it provides similar benefits at an even lower monthly cost of $1746.
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New York, NY: While the cost of living in the city stands at $2167, it still provides cheaper gas, utilities, and food prices compared to other first-tier cities on the east coast.
In addition to registering the company in a corporate-friendly state and using a registered agent, business owners should look into smart home improvements and affordable storage options to further reduce monthly costs and keep your business and personal books balanced.
Written by Guest Contributor Theresa McArthur
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